Substitute House Bill No. 5249 amends the charter of the South Central Connecticut Regional Water Authority (RWA) to redefine "water company" and adjust the governance structure of the authority. The new definition of "water company" now includes any entity supplying water to fifty or more consumers, while excluding homeowners and condominium associations that primarily serve their unit owners, provided that at least eighty percent of their customers are unit owners. The bill also clarifies that municipal waterworks systems with fewer than three hundred thousand customer accounts are not classified as water companies. Additionally, the governance structure is modified by reducing the number of board members appointed by the RWA's representative policy board from six to five, while increasing the number appointed by the Aquarion Regional Water District from five to six.

The bill further stipulates that no members shall be appointed to the board of the authority or the Aquarion representative policy board until the Public Utilities Regulatory Authority (PURA) grants approval for the RWA or the Aquarion Water Authority to operate the Aquarion Water Company. It outlines the terms of appointment for board members, which last five years with a maximum of four consecutive terms, and includes provisions for compensation and expense reimbursement. The bill also allows the authority to acquire privately owned water or wastewater companies and clarifies that certain general statutes will not apply to these acquisitions. Overall, the legislation aims to streamline the governance and operational capabilities of the water authorities in Connecticut while ensuring compliance with local regulations.